Argentina Unopposed to Bank Deal With Hedge Funds (Bloomberg)
Argentina’s Economy Minister Axel Kicillof said the government wouldn’t oppose a third-party solution to its dispute with a group of hedge funds who successfully sued the country for $1.5 billion. A U.S. judge has blocked Argentina from paying its debt — including an interest payment due July 30 on $13 billion of bonds — until the hedge funds led by Elliott Management Corp. get their money. Standard & Poor’s declared the country in default while Moody’s Investors Service placed its rating on negative outlook.
Gross Left Behind in Pimco Return to Top as Deputies Rise (Bloomberg)
Bill Gross promised in May that funds managed by his Pacific Investment Management Co. would be back on top by the end of the year. So far, his prediction is looking good — unless you count the funds that Gross himself runs. Nine of Pimco’s 15 largest mutual funds are beating at least 75 percent of peers so far this year, according to data compiled by Chicago-based research company Morningstar Inc. None of those top performers are managed by Chief Investment Officer Gross. Of the four funds trailing more than half their rivals, three including the Pimco Total Return Fund are run by the 70-year-old investor known as the bond king.
Tax-Averse French Seek Shelter in Portugal (BusinessWeek)
Under Portugal’s so-called non-habitual-resident program, foreign pensioners who come to live in the country have their pension income exempt from taxes as long as the income is paid from a foreign source. A foreigner has to live at least 183 days a year in Portugal to qualify as a tax resident. France only taxes citizens who live in the country—not French who live abroad. “This means that the pension income may end up not being taxed at all,” says Luis Filipe Sousa, a tax manager at PricewaterhouseCoopers in Lisbon.
SEC probes its own leak but can’t find culprit (CNBC)
The inspector general of the Securities and Exchange Commission conducted an intensive, months-long dragnet in 2013 and 2014 involving phone, email and security searches to determine who inside the agency allegedly leaked information to the media about a closed commission meeting discussing the massive JPMorgan “London Whale” settlement, CNBC has learned. Investigators at the Office of the Inspector General produced a 16-page report detailing their findings in March, but that report has never been made public. A copy of the report was obtained by CNBC on Thursday. The document paints a picture of an SEC in which commission members are at odds with one another and investigators scrutinize their colleagues, staff and the media. It also details just how far the inspector general went to learn how information about a Sept. 12, 2013, executive session commission meeting about JPMorgan had apparently been given to a Reuters reporter, Sarah Lynch.
Fired Miami Beach cop gets job back after blaming cocaine test on sex-aid cream (MH)
After Miami Beach police Detective Reinaldo Casas tested positive for cocaine, he insisted that the drug had been unwittingly absorbed into his blood through an erection-enhancing cream he applied to his genitals. His defense worked. An arbitrator this week ordered Casas, who was fired last year because of the positive drug test, be reinstated with complete back pay. “There is no evidence in the record to show that [Casas] was aware the cream contained a controlled substance,” according to the arbitrator’s report, which was released Thursday. Read more »